One Line Answer
Answer the following question.
Describe the bad effects of informal sources of credit on borrowers.
Advertisement Remove all ads
Solution
The informal sources of credit are the moneylenders, traders, employers, relatives, and friends. No external organizations control the credit activities of lenders. The rate of interest can be really high as it depends on the wishes of the lender. They can also use unfair means to get their money back.
Concept: Formal and Informal Financial Institutions for Savings and Credit
Is there an error in this question or solution?
APPEARS IN
Advertisement Remove all ads